Here are the top business stories in Cyprus from the week starting January 13:
The need for enhanced collaboration between public authorities and private enterprises was emphasised during the recently held ‘Beyond Sea & Sun’ conference. This event, organised by Hermes Airports with the support of Hellenic Bank, focused on strategies to transform Cyprus into a year-round tourist destination.
The conference addressed issues such as infrastructure development, legislative updates, and alternative tourism models, with a particular emphasis on global trends and the evolution of Cyprus’ tourism offerings. Speaking on a panel dedicated to improving tourist experiences through infrastructure, Phivos Stasopoulos, Chief Banking Officer at Hellenic Bank, highlighted the crucial role of the tourism industry in Cyprus’ economy.
Moreover, Hellenic Bank on Monday announced the launch of a new mortgage product offering fixed interest rates. This has been rolled out alongside a new rewards programme that the bank described as “designed to make homeownership more accessible and manageable for customers”.
The mortgage features a fixed interest rate of 2.95 per cent for three years or 3.10 per cent for five years. “This affordable interest rate, combined with the stability it offers, gives customers greater security and adaptability to their new financial circumstances,” the announcement explained.
Simultaneously, the number of short-term rental properties has seen significant growth across Cyprus, according to data shared with the House of Representatives by the Deputy Ministry of Tourism.
Deputy Tourism Minister Kostas Koumis reported that 8,071 licences for self-catering accommodations have been issued or renewed nationwide, offering a total capacity of 35,894 beds. Tourism official Marios Tsiannakas has previously noted a consistent increase in these numbers in recent years. “We have surpassed 6,700 accommodations and exceeded 30,000 beds,” he stated earlier this year.
These agreements were formalised during a tripartite summit held in the Egyptian capital, bringing together the leaders of Cyprus, Greece, and Egypt to discuss collaboration across multiple sectors.
The agency pointed out that the MoUs cover a number of critical areas such as investment, healthcare, water resource management, technology, and port development. It further explained that this reflects the commitment of the three nations to strengthen regional cooperation and drive mutual growth.
Also, the first official session of the advisory committee for strengthening the competitiveness and quality of the Cyprus flag was held in Athens this week, attended by Deputy Minister of Shipping Marina Hadjimanolis.
According to an announcement, the meeting aimed to “refine strategies that enhance the global standing of the Cyprus flag amidst ongoing challenges in the maritime sector”. The committee, composed of prominent shipowners from Greece and Cyprus, tackled a range of topics including the promotion of the Cyprus flag and the broader issues currently impacting global shipping.
Discussions focused on leveraging technological innovations and addressing environmental regulations to bolster the flag’s competitive edge.
In an official statement, the association reminded the public of its ongoing efforts to address unfair clauses in loan contracts, highlighting its latest announcement dated July 8, 2024. The association said that since May 2021, under Law 112(I)/2021, decisions made by the Director of the Consumer Protection Service are enforceable and allow for penalties amounting to millions of euros.
He stated that foreign investment is not only beneficial but essential, explaining that it drives liquidity, creates skilled jobs, and transfers valuable know-how to Cyprus—key factors in fostering economic prosperity.
Despite global uncertainties, Demetriades highlighted the sector’s potential for growth, underscoring the importance of attracting foreign capital to sustain and expand Cyprus’ economy.
Announced on Tuesday, Spain’s plans to discourage foreigners from buying homes involve increasing taxes by up to 100 per cent on properties purchased by non-EU citizens who do not live in an EU country.
Other suggested changes include higher taxes on holiday rentals, tax breaks and support for landlords offering affordable housing, and legal reforms to speed up construction and increase land available for private building.
Spanish prime minister Pedro Sanchez pointed out that non-EU residents purchased 27,000 properties in Spain in 2023, “not to live in” but “to make money from”. However, he has not yet provided a timeline or detailed plans for implementing this tax.
Speaking to the Cyprus Mail, Pavlos Loizou, CEO of real estate analytics firm Ask Wire, questioned whether these measures will actually be enacted and, if so, how thorough their implementation will be.
Further reflecting on consumer interests, the Cyprus Consumers Association (CCA) recorded thousands of consumer complaints in 2024, marking a 24 per cent increase compared to the previous year.
The association’s annual report, released on Wednesday, showed that a range of major issues continued to affect consumers, ranging from passenger rights to rising living costs. According to the CCA’s 2024 complaint report, the association facilitated the return of a total amount of €3,240.76 to consumers through informal mediation.
The complaints in the report include cases that were either forwarded to relevant authorities for potential legal violations or handled directly by the CCA. Others involved providing consumers with guidance and advice. The CCA said that many complaints have been successfully resolved.
The company confirmed that no adverse effects on its operations or interests would arise if E.V.H. proceeds with a public offer to acquire up to 100 per cent of the issued share capital of Salamis Tours. In a statement released this week, the company’s board of directors sought to ease staff concerns over these developments.
Additionally, the outlook for Cyprus tourism in 2025 is encouraging, with booking flows surpassing those of the previous year, according to president of the Cyprus Hoteliers Association (Pasyxe) Thanos Michaelides.
Speaking to the Cyprus News Agency (CNA), Michaelides stated that early bookings for 2025 are showing stronger interest compared to the same period in 2024.
He explained that “while 2024 was considered a good year, the first half experienced sluggish booking activity from Cyprus’ key markets“. “However”, he continued, “this was offset by improved bookings in the second half”.
Parallel to this, the Central Bank of Cyprus (CBC) aims to maintain stable prices and a sound financial system, according to governor Christodoulos Patsalides.
Speaking at the 12th Banking Forum and Fintech Expo on Thursday, Patsalides said that “by embracing the digital economy, ensuring robust governance, and addressing climate change, we are positioning Cyprus as a forward-looking financial hub in Europe“. “Together, we will navigate the challenges and opportunities of the future, ensuring stability and prosperity for all,” he added.
This was further underlined in Patsalides’ opening remarks, where he said the CBC’s agenda focuses on embracing digital transformation, ensuring robust governance, addressing societal and environmental challenges, and safeguarding financial stability.
Deputy Minister of Shipping Marina Hadjimanolis highlighted the need to enhance the competitiveness of the Cyprus maritime flag during a two-day visit to Athens. On the first day of her visit, Hadjimanolis chaired the initial regular meeting of the advisory committee for strengthening the competitiveness and quality of the Cyprus flag.
The committee deliberated on innovative strategies to attract more ships to the Cyprus Registry amid escalating challenges within the global shipping industry. “The ongoing efforts to bolster our maritime registry are crucial in ensuring Cyprus remains a top-tier maritime hub,” Hadjimanolis said.
The next day, Hadjimanolis addressed a conference organised by the Hellenic Chamber of passenger shipping, under the auspices of the ministry of shipping and island policy, Greece, themed ‘Modern Ferry Transport, Sustainable Development of Islands.’
Concluding the week, Rating agency DBRS this week released a report projecting robust GDP growth for Cyprus over the coming years. The agency explained that its projections are based on a positive trend in unemployment and Cyprus’ strong fiscal performance in recent years, despite challenges in the country’s service-based economy.
According to DBRS, Cyprus is set to sustain strong economic growth driven by improvements in employment and government financial health. The agency, drawing on data from the Central Bank of Cyprus (CBC), notes a persistent downward trend in non-performing loans (NPLs), which decreased from 43.7 per cent at the end of 2017 to 6.8 per cent in August 2024, marking a significant reduction of €18.9 billion in absolute terms.
Furthermore, Limassol’s Ariel Cinema, a historic site long out of use, is set to be transformed into a 19-storey mixed-use tower following approval from the environment department. Dating back to 1966, the cinema was located at the intersection of Makariou and Agia Zoni streets and featured separate theatres for winter and summer viewings, making it a notable landmark of its time.
Its name, ‘Ariel,’ was an acronym created from the owners’ names, Aristotelous and Eleni Polimidi.
The €45 million project, led by a businessman of Armenian origin and his company Pandigi Ltd, will introduce mixed residential and office spaces across a total buildable area of 11,000 square metres.
In a statement released by the association, the meeting, described as ‘constructive’, saw the participation of key figures including department director Kyriakos Koundouros, Markella Hadzida, the district planning officer, and Yiannis Misirlis, the president of the association, alongside other board members and general manager Mersina Isidorou.
The focus of the discussion was the challenges property developers face with licensing, especially the practices of some municipalities.
Eurobank’s acquisition of Hellenic Bank is expected to conclude by the end of May, paving the way for the legal and operational merger with Eurobank Cyprus. The latest update on acquisition process was confirmed by Hellenic Bank CEO Michalis Louis during the 12th Banking Forum and Fintech Expo which took place this week.
This was first reported in November of the previous year, with the amount involved in the deal estimated at approximately €1.2 billion.
It was also reported at the time that after securing over 90 per cent of the bank’s issued share capital and voting rights, Eurobank intends to exercise its squeeze-out rights under Article 36 of the law and delist Hellenic Bank shares from the Cyprus Stock Exchange.
Finally, the 17th International Shipping Conference took place in Athens this week, with the central theme being the bridging of the shipping industry with capital markets. Co-hosted by Maritime Economies and UPoilTankers and Trading Inc., the event attracted 244 industry professionals and featured 31 speakers alongside 34 sponsors, enriched by significant insights from Cyprus’ maritime sector leaders.
